It's hard to forget the January 2016 drop in the Shanghai Composite Index that caused declines in international equity indexes.
The International Monetary Fund expects that worries over China will increase speculation over its economy as market dependence between emerging and developed countries increases.
Compared to the 50 percent linkage in 1995, movement in the global equity markets in 2015 was 80 percent, which shows an increased correlation between markets.
Following the crisis in 2008, the world markets from market spillovers to avant-garde economies has grown by 28 percent, as stated in the IMF report.
It was also indicated that China’s influence in the world financial system will continue to increase alongside the country’s economic and policy developments over global market stability. Forecasts also state that spillovers from China will increase dramatically over the next few years.
Overall, Chinese exports to the United States represent a minor part of the latter's economy, in other words, speculations over China’s economic health should not reflect so much on companies based in the world’s strongest economy.
The Chinese financial system, on the other hand, has direct links to the Japanese economy and any problems can be clearly sensed in the land of the rising sun.
While the current impact may be small for the American economy, the rate of growth of market contagion between matured and emerging markets appears to increase. According to the IMF report, the main reason is the fundamental connection, for example, stocks of commodity producers declining when Chinese industrial giants start losing.
It is hard to forget the 7th of January 2016, when the sudden, unexpected 7 percent drop in the Shanghai Composite Index caused declines in equity indexes around the world, including the United States, Japan, and Australia. The same month was the worst since August for the Dow Jones Industrial average, yet again caused by concerns over China.
The IMF has indicated a stronger link and elevated market integration due to global trends contributing to spillovers in equity markets usually between emerging and advanced economies.
The IMF also stated that all analysed data could not explain the contagion, part of it resulting in the day-to-day decisions of millions of investors.
The International Monetary Fund expects that worries over China will increase speculation over its economy as market dependence between emerging and developed countries increases.
Compared to the 50 percent linkage in 1995, movement in the global equity markets in 2015 was 80 percent, which shows an increased correlation between markets.
Following the crisis in 2008, the world markets from market spillovers to avant-garde economies has grown by 28 percent, as stated in the IMF report.
It was also indicated that China’s influence in the world financial system will continue to increase alongside the country’s economic and policy developments over global market stability. Forecasts also state that spillovers from China will increase dramatically over the next few years.
Overall, Chinese exports to the United States represent a minor part of the latter's economy, in other words, speculations over China’s economic health should not reflect so much on companies based in the world’s strongest economy.
The Chinese financial system, on the other hand, has direct links to the Japanese economy and any problems can be clearly sensed in the land of the rising sun.
While the current impact may be small for the American economy, the rate of growth of market contagion between matured and emerging markets appears to increase. According to the IMF report, the main reason is the fundamental connection, for example, stocks of commodity producers declining when Chinese industrial giants start losing.
It is hard to forget the 7th of January 2016, when the sudden, unexpected 7 percent drop in the Shanghai Composite Index caused declines in equity indexes around the world, including the United States, Japan, and Australia. The same month was the worst since August for the Dow Jones Industrial average, yet again caused by concerns over China.
The IMF has indicated a stronger link and elevated market integration due to global trends contributing to spillovers in equity markets usually between emerging and advanced economies.
The IMF also stated that all analysed data could not explain the contagion, part of it resulting in the day-to-day decisions of millions of investors.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
FM's Editor-in-Chief Yam Yehoshua on how the newsroom evaluates stories.
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Matthew Smith, Group CEO at EC Markets, speaking at FMLS:24
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
Finance Magnates Annual Awards 2024 | FM Awards 2024 Highlights
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
🎥Catch the best moments from the Finance Magnates Annual Awards Gala Dinner!
An evening where top names in finance came together to celebrate achievements, enjoy live music, and connect over a memorable dinner. Watch the highlights and feel the energy of our first gala in Cyprus!
Congratulations to all the winners for their dedication to excellence and leadership in the financial industry, including XM, Trading PRO, FP Markets, Deriv, FxPro, LATAM, Headway, ATFX, FBS, AMEGA, EC Markets, Axi
For more information about the 1st Finance Magnates Annual Awards, visit https://bit.ly/3Zb7wNz
#FinanceMagnatesGala #IndustryExcellence #GalaHighlights #FinanceMagnatesAnnualAwards #FinanceMagnatesAwards #CelebratingSuccess #FinanceCommunity
FMLS:24 | Shaping the Next Era of Financial Evolution
FMLS:24 | Shaping the Next Era of Financial Evolution
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Welcome to FMLS:24 – the premier event where influential brands and leaders in trading, payments, fintech, and digital assets come together!
Join over 2,500 industry professionals, engage with 150+ expert speakers, and discover endless opportunities with 70+ top exhibitors. FMLS:24 is where senior executives and decision-makers gather to close deals, forge new partnerships, and strengthen connections with long-term clients.
Whether you’re in finance, technology, or payments, this summit is your gateway to future growth, meaningful collaborations, and industry-leading insights.
👉 Don't miss out – secure your ticket now at https://events.financemagnates.com/ZQEYy0?utm_source=youtube&utm_campaign=fmls24-awareness&utm_medium=video&RefId=MLS%3A24+Video+Promo
#fmls #fmls24 #fmevents #financemagnates #forex #payments #crypto #events #london #fintech #ai #generativeai #technology #onlinetrading #forex #investing #investors #tech
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!